Make then stick as close to that good faith estimate as possible! And stick to YOUR guns. You got a good faith estimate for a reason, to protect you from abuses. Are you using an attorney to close? I know a lot of states now use the title company to close, but if you are feeling this uncertain it may be worth the money to hire an attorney. Also, consult with your realtor. They should be able to go over this with you, and at the very least ask some tough questions of the lender. If the realtor seems hesitate, go to the broker for the office and insist on getting some help.
I thought FHA required a down payment of 3.5% now. As for the $4500, that would depend on how it appears on the settlement paperwork, the HUD-1. Insist on seeing a draft of the HUD-1. Origination fees should be spelled out in the good faith estimate. And it is true they cannot pinpoint exact out of pocket expenses due to per diem costs for such things as water, sewer, property taxes and so on, but they CAN give you a very close estimate. Don't be afraid to ask questions and insist on getting clear and concise answers.... more
I got a 203K loan when I bought my house. And yes, you can get an extension on the work being completed, I believe up to a year. Remember, the bank officials are probably nowhere you geographically, they don't know the weather conditions in Montana. Sounds like it's impossible to replace the roof until spring anyway.
FHA usually assigns someone to oversee the work in increments. The contractor does a part of the work, the inspector comes in, sees that the work was done properly and then releases a portion of the rehab money to the contractor, who then starts the second phase of the job. It's actually quite nice becasue it relieves the homeowner of having to deal with the contractor directly and ensures the job is done right.
I don't know why your appraisal was not ordered in a timely fashion, expect that I know 203 K loans take longer to put together, you have to have repair estimates and an agreement in place with the contractors prior to closing. I don't know whether you can change the type of loan now, and, honestly I don't know that you would want to. The roof and decks sound as though they need to be repaired and/or replaced anyway. It would not be safe for you to live in a home that is in poor condition, the roof could cave in or the decks could collapse. So, unless you have the money to have those repairs done yourself, I would go ahead with the 203K loan, get the work done.... more
These items should have all been addressed on your purchase and sales agreement when you made the offer. Anything you can see with teh naked eye that would not pass the FHA appraisal/inspection should be addressed before they find them, hidden defects such as termites, well, septic etc are the only issues that could affect your purchase if everything else is addressed up front. if there is that much stuff, you may want or need a fha 203k to get money to fix them....... more